Consumers looking for the best interest rates when comparing personal loans typically have good to excellent credit scores. Used for a variety of personal finance matters from consolidating debt or home improvement to a big purchase or paying for a wedding,
Borrowers with good to excellent credit scores (690 and above) are able to have their pick of the personal loan opportunities available, with the best rates and no fees
How to Apply for a Personal Loan
The place to start is knowing your credit score. It’s advised that you review your report from all three credit rating bureaus (Equifax, TransUnion, and Experian) prior to applying for a personal loan. Having this information beforehand will provide you with a better idea of which lenders might consider and approve your application.
Next, you want to take the time to shop around, and compare the rates, fees and terms of the lenders before making a decision. Fortunately, Match Financial makes it easy to compare personal loans so that you can find the best deal.
When you have decided upon a lender, it’s time to submit your application. This can often cause a hard credit inquiry, depending on the lender, and you’ll likely still need to provide them additional information, from a copy of your driver’s license or identification and verification of both income and employment.
Reasons to Get a Personal Loan
Choosing to get a personal loan is a decision not to be taken lightly. It can impact your life for years as you pay down the balance, so considering the costs, risks and related should not be a hasty decision.
Depending on whether you want to consolidate your debt or make a large purchase, the decision to get a personal loan is often one that can be life changing. For those that qualify for a preferred rate will often be offered a low annualized percentage rate (APR) and can be used to pay off high-rate debts or credit cards that might be costing more than what a personal loan might.
What to Know About Personal Loans
Learn how to apply and what you need to know about your credit score or bad credit.
What to Look for in Personal Loans
It often comes down to your own personal credit history when determining what sort of personal loans might be available to you, but as the saying goes, it pays to shop around.
Match Financial assists you with comparing your options and through the lenders we work with to help you find some of the best options available.
The things to mainly be concerned with when comparing personal loans would be
- Interest rates – the lower the better. Not only does it decrease your monthly payments, it can also save you thousands of dollars over the term of your loan. The APR represents your true annual cost of borrowing when you factor in the interest rate and upfront fees.
- Reasonable terms – finding the right terms can almost be as important as the rate you might pay.
- Low fees – knowing and understanding the fees many lenders charge is also important. An origination fee can range from 1% to 8% of the amount you borrow, meaning that sometimes you need to borrow more than you might assume just to cover any fees involved.
The Basics of Personal Loans
Most personal loans will range from 4 to 36% interest rate, with this rate based on your credit score and history. Several other factors can be considered, from debt-to-income ratio (DTI) to the amount you are looking to borrow, along with the term, are all considered.
Those with a good credit rating and history are usually favored by lenders. It tells them less risk is involved, and they are more likely to be paid back in full, on time. For those with good credit scores (690 and above) there are often preferable rates and terms available.
It’s important that you are honest with yourself about what you can afford in terms of monthly payments. You also want to find the shortest term within your budget, so you are not paying interest for longer than you have to.
How to Use Personal Loans
From how to use personal loans to ways they can help you to pay off debt and more.